Kenwood 2001 Annual Report Download - page 14

KENWOOD Corporation Annual Report 2001
12
Director & Division Manager,
Communications Division
Construct a New Organization to
Instill Vigor into Business
Moriyuki Tamura
Termination of non-profitable businesses paves
the way to the future
Communications Division has put an end to business
operations that have been losing money in the past. First, the
company had withdrawn from the GSM business during the
last fiscal term and then the business operation of PHS
(Personal Handy-phone System) was suspended. With the
new management system formed in May 2001, the division
will focus on securing steady income by concentrating its
resources in areas where the profitability is higher or the
potential in the future is greater and further aims at a long-
term business expansion.
Enhancement of the sales organization
for systems integration
In the wireless radio business, we are undertaking an effort to
strengthen and expand the sales of commercial radio
systems, including base station equipment, with the
understanding that this is an area where a growth is expected.
Although Kenwood had already done much work in
integration of LMR systems both in Japan and the US in the
past, it further enhanced the organization in the US, the
largest market of all, by relocating the marketing team of
Kenwood Systems Inc. to Atlanta in
June 2001 for better communication
with the development team stationed
there. The move enables the
company to offer precise solutions
addressing particular needs of every
customer, whether it is a public office,
distributor, manufacturer, or a business
in some other field. With the business
know-how and experiences gained in
Japan and the US, we are planning to
expand the systems integration
business to Europe and Asia.
In the US, the bandwidth open to the public will be cut down
to 6.25kHz, half of the current bandwidth, with the planned
revision of regulations on radio communications in 2005.
Kenwood already has a technology that addresses the
problems associated with a narrow bandwidth and thus
intends to take advantage of the new regulation in expanding
its market share in the US. Besides LMR, the company is
planning to promote a vehicle management system utilizing
GPS in Japan and to introduce new models of low-power
transceivers, which are gaining in popularity for amateur radio
and business use, both in and outside Japan. With these
measures, we will try to expand the sales in every possible way.
Enhanced development system and
collaboration for PDC
In the mobile communications business, we will concentrate
our resources on the PDC, which are currently supplied to
J-PHONE. The development team has already been
expanded to three groups and has started its operation based
on the new plan to release two new models each year - up
from the previous one-per-year schedule. From now on, the
lead-time for new model introduction will be further shortened
and joint development and production programs with other
companies will be pursued so that we
will be able to adapt to rapid changes in
the PDC market.
On the other hand, the company will
try to stop the bleeding in the home
telephone business by adding more
sophisticated machines in its product
range. In addition to the existing
business with Japan Telecom, the
company is planning to introduce new
models compatible with "L-mode," a new
service introduced by the NTT group.
Distinguish and concentrate on the areas of interest
for enhanced profitability
and cultivation of new businesses
Comm
Communications Equipment Division